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Pa. gas drilling decision leaves future uncertain

The energy industry and policy makers in Pennsylvania, the heart of the nation’s gas drilling boom, are thinking about their next moves after the state’s highest court threw out significant portions of a law that limited the power of cities and counties to regulate the industry. The state Supreme Court voted 4-2 on Thursday to strike down portions of a 2012 law that had been crafted by Gov. Tom Corbett and his industry-friendly allies in the Legislature. Republican leaders in the General Assembly said the decision raised more questions than it answered and could damage the growing industry. They said they were not sure, for example, what the ruling would mean for the millions in impact fees being collected under the law. Pennsylvania has over the past five years seen a boom in drilling and related industries rushing to exploit the deposits in the rock […]

Posted On : Published By : Tom Whipple
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House Democrats want hearings on fracking quakes

Ranking Democrats serving on House energy committees have called for hearings to discuss possible seismic activity associated with hydraulic fracturing. Reps. Henry Waxman , D-Calif., ranking member of the House Energy and Commerce Committee, and Peter DeFazio , D-Ore., ranking member of the House Committee on Natural Resources, issued a letter to their Republican counterparts requesting a hearing on the risks of man-made earthquakes. The ranking members point to a joint October study from the U.S. Geological Survey and Oklahoma Geological Survey that suggested tremors in the state "may" be linked to hydraulic fracturing. Hydraulic fracturing, known also as fracking, is a target of criticism by environmental groups. Waxman and DeFazio said injecting wastewater generated by fracking underground could be a potential cause of earthquakes. "Underground fluid injection has been known to have the potential to cause earthquakes since the phenomenon was first observed […]

Posted On : Published By : Tom Whipple
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Whiting refinery overhaul a win for Indiana, BP says

BP said its overhaul of the Whiting oil refinery in Indiana represents the largest private sector investment in state history. BP announced its $4 billion upgrade at the Whiting oil refinery was completed with the commissioning of a new unit. Refinery manager Nick Spencer said the project represents the largest investment in Indiana history. "Our investment in Whiting’s future shows BP’s commitment to safely providing energy and jobs in America," he said in a statement Wednesday. The Whiting facility employs 1,900 people. Ian Conn, downstream manager for BP, said the overhaul means the facility is ready to process more Canadian crude oil, which is cheaper than rival grades. "This world-class refinery is in the right location with the right equipment to process growing supplies of North American crude oil, including heavy grades from Canada," he said in a statement. BP said the refinery […]

Posted On : Published By : Tom Whipple
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North Dakota grants more support to oil, gas counties

North Dakota Gov. Jack Dalrymple said grants of nearly $10 million for state oil- and gas-producing counties will help the education system cope with expansion. "These grants are an important part of a larger state commitment to help meet the many challenges that are created by rapid growth in the state’s oil and gas region," the governor said in a statement Wednesday. The funds target K-12 schools and higher education in expanding parts of the state. Oil and natural gas production from the Bakken and Three Forks shale areas in western North Dakota are providing substantial stimulus to the state economy. The North Dakota Industrial Commission said oil production in October, the last full month for which data are available, was 941,637 barrels per day, an all-time high for the state. Last year, gross domestic product per capita in North Dakota was $55,250, […]

Posted On : Published By : Tom Whipple
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U.S. budget deal gives win to oil industry

Eric Milito, a director at the American Petroleum Institute, said the nod for an energy agreement with Mexico transforms the regional offshore energy sector. "American companies will now have the certainty they need to invest confidently along our maritime border with Mexico," he said in a statement Wednesday. A budget deal passed by U.S. lawmakers this week included consent for the Transboundary Hydrocarbon Agreement between the United States and Mexico. The U.S. Interior Department estimates the transboundary region in the Gulf of Mexico holds as much as 172 million barrels of oil and 304 billion cubic feet of natural gas. "The energy production made possible by this agreement will put Americans to work and raise more revenue for the government," Milito said. API said as much as $51 billion in potential revenue could be generated from expanded work in the Gulf of Mexico. The […]

Posted On : Published By : Tom Whipple
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EIA: Pennsylvania Fastest Growing Gas Producer Thanks to Marcellus

Pennsylvania Fastest Growing Gas Producer Thanks to Marcellus Marcellus shale gas production boosted Pennsylvania from the seventh-largest to third-largest marketed U.S. natural gas producing state from 2011 to 2012, and may lift the state to the rank of second-largest natural gas producer this year, according to a Dec. 17 report by the U.S. Energy Information Administration (EIA). The state’s marketed natural gas production, which includes natural gas plant liquids, rose by 72 percent from 2011 to 2012, according to the EIA report Natural Gas Annual 2012. Earlier this month, EIA said that the Marcellus shale gas area in the eastern United States may account for 18 percent of total U.S. gas production, United Press International reported Dec. 10. Texas topped the list for marketed natural gas in the top 10 producing states from 2011 to 2012, followed by the Louisiana and Pennsylvania. Oklahoma, Wyoming, Colorado, federal offshore, […]

Posted On : Published By : Tom Whipple
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The Natural Gas Glut Is, Like, So Over. Price Soars!

Someone must have known something. Natural gas jumped over 2% this morning before the Energy Information Administration released its Weekly Natural Gas Storage Report at 10:30 a.m. The report would show how much natural gas was in underground storage nationwide on December 13, and how much had been withdrawn from storage during that week. Every Thursday, the report sends gas futures gyrating up or down. But today, they gyrated up from the start of trading. "Unusually" cold weather had swept parts of the country. Natural gas consumption reacts sharply to cold temperatures. So analysts surveyed by Platts had jacked up their estimates for a withdrawal of 260 to 264 billion cubic feet, far above the 70 Bcf during the same week last year and above the five-year average of 133 Bcf for the week. Gas has been rising in anticipation for days. When the EIA report hit at 10:30 […]

Posted On : Published By : Tom Whipple
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Natural gas saves water, even when factoring in water lost to hydraulic fracturing

Natural gas saves water, even when factoring in water lost to hydraulic fracturing Page added on December 20, 2013 For every gallon of water used to produce natural gas through hydraulic fracturing, Texas saved 33 gallons of water by generating electricity with that natural gas instead of coal (in 2011). Credit: University of Texas at Austin A new study finds that in Texas, the U.S. state that annually generates the most electricity, the transition from coal to natural gas for electricity generation is saving water and making the state less vulnerable to drought. Even though exploration for natural gas through hydraulic fracturing requires significant water consumption in Texas, the new consumption is easily offset by the overall water efficiencies of shifting electricity generation from coal to natural gas. The researchers estimate that water saved by shifting a power plant from coal to natural gas is 25 to 50 times […]

Posted On : Published By : Tom Whipple
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Canada approves proposed Northern Gateway pipeline, but with 209 conditions

Canada’s Joint Review Panel has given the go-ahead for the Enbridge-backed 525,000 b/d Northern Gateway pipeline that will open up a much-desired export outlet for land-locked Alberta oil sands crude to Asia, setting 209 conditions, a report released late Thursday said. "The project, if built and operated in compliance with the conditions set out, would be in the public interest," the report stated. The report’s major conditions include the developing of marine mammal protection plan, implementing new offshore terminal safety regulations, preparing a caribou habitat restoration plan, and developing an emergency plan to deal with marine spills. Article continues below… Request a free trial of: Oilgram News Oilgram News Oilgram News brings you fast-breaking global petroleum and gas news on and including: Industry players, upstream and downstream markets, refineries, midstream transportation and financial reports Supply and demand trends, government actions, exploration and technology Daily […]

Posted On : Published By : Tom Whipple
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Enbridge's Northern Gateway Pipeline Gets Backing

Enbridge Inc. ‘s proposed Northern Gateway project cleared a key hurdle Thursday after a Canadian advisory panel recommended it. The pipeline would connect Alberta’s landlocked oil sands to a Pacific coast port for export primarily to markets in Asia. The decision is expected to spur a final finding in favor of the project by Canada’s federal Cabinet within a mandatory 180-day window, and likely will influence a debate over other proposed pipeline projects that aim to reduce market bottlenecks amid a boom in North […]

Posted On : Published By : Tom Whipple